The Economics of Renewable Energy: A Cost-Benefit Analysis of Solar Power Adoption

Abstract

Renewable energy, particularly solar power, has gained widespread attention as a sustainable solution to the global energy crisis. This paper presents a comprehensive cost-benefit analysis of solar power adoption in Spain, focusing on its economic, environmental, and social impacts. By analyzing data from solar power projects implemented between 2015 and 2023, we assessed the financial feasibility of solar energy compared to traditional fossil fuels. The results indicate that while initial setup costs for solar power are high, long-term economic benefits, including energy savings and job creation, outweigh the costs. Additionally, solar power adoption has significantly reduced carbon emissions, contributing to Spain's climate goals. The study concludes with recommendations for expanding solar power infrastructure and incentivizing renewable energy investments to ensure sustainable growth.